Serbia's central bank raised its key interest rate to 11.25 percent on Friday, as annual inflation hit 11.9 percent, twice the targeted rate.
"The rise of inflation has slowed down in November, but it is still above the top limit of the target range," the National Bank of Serbia said in a statement.
Serbia's target range for 2012 inflation was set at 5.5 percent. But the NBS said the annual level of inflation in November was at 11.9 percent.
According to Serbia's independent Economy Institute the inflation rate for 2012 is likely to reach 14 percent.
Serbia's government forecasts the economy will contract by 1.5 percent this year.